Small builders face barriers to growth

Small housebuilders and developers in the UK face serious barriers to growth, with planning, access to finance and land availability highlighted as the biggest challenges for small companies. Research by the NHBC Foundation shows that there has been a significant decline in the number of small firms active in housebuilding in recent years – halving between 2007 and 2013, with only 2,710 estimated to have been building last year.

The report Improving the prospects for small house builders and developers was supported by the HBF, the HBA and the FMB, and captured the views of nearly 500 small housebuilders and developers. It found that despite encouraging signs of housebuilding growth in the UK, the early stages of the recovery do not appear to have improved prospects for smaller builders.

The report contains a number of recommendations to address these barriers, including promoting the Builders Finance Fund and making information on available land more accessible.